Uttar Pradesh Chief Minister Yogi Adityanath on Saturday, 3 October accused the previous state government of systematically embezzling scholarship funds, alleging that even Scheduled Caste (SC) and Scheduled Tribe (ST) students were denied their entitled scholarships in 2016-17. Speaking at a scholarship and fee reimbursement distribution programme at Lok Bhavan auditorium in Lucknow, he transferred more than ₹148 crore directly to the bank accounts of 4,60,559 students with a single click.

Allegations Against the Previous Government

Chief Minister Adityanath alleged that scholarships were previously siphoned off through bureaucratic manipulation, with eligible students — including those from the most marginalised communities — being left without financial support. He claimed that scholarships pending before 2017 were only cleared after his government assumed power. The transition to the Direct Benefit Transfer (DBT) system, he said, has eliminated intermediaries and ensures the full amount reaches students' bank accounts directly.

Taking a broader swipe at the pre-2017 administration, Adityanath alleged that riots, curfews, and hooliganism were rampant during that period, and that students and youth faced compounded difficulties because of poor law and order alongside the scholarship irregularities.

Scale of This Year's Scholarship Drive

Saturday's disbursement was described by the Chief Minister as only the beginning of the current cycle. The government has set a target of extending scholarship benefits to 70 lakh students this year. For context, scholarships worth ₹6,200 crore were provided to 69 lakh students in the previous year — more than double the approximately ₹2,900 crore disbursed before 2017. Officials have been directed to ensure all eligible students receive their scholarships by 26 January. Additionally, nearly 4 lakh students who missed out last year due to application or technical errors are being re-enrolled through a special campaign.

Of the 4,60,559 beneficiaries in Saturday's tranche, 2,23,615 were students from backward classes, while 36.75 lakh OBC students received scholarships during 2025-26, according to UP Minister Narendra Kumar Kashyap. Minister Om Prakash Rajbhar added that more than 39 lakh minority students had received scholarships over the past nine years.

Education and Infrastructure Reforms Cited

Adityanath pointed to a broader turnaround in the state's education ecosystem. He said the dropout rate in basic education stood between 19 and 20 per cent before 2017, and attributed its decline to Operation Kayakalp, which has upgraded school infrastructure with toilets, drinking water, furniture, smart classrooms, and digital libraries. Funds are being provided for uniforms, school bags, books, shoes, socks, and sweaters to 1.60 crore children under the Basic Education Council.

Atal Residential Schools are now operational across all 18 divisions, with approximately 18,000 children from labour and disadvantaged backgrounds enrolled. Kasturba Gandhi Balika Vidyalayas are functioning in 746 development blocks, and under Project Alankar, infrastructure has been enhanced in more than 2,300 schools.

Employment and Youth Initiatives

The Chief Minister said 10 lakh young people had been provided government jobs in the state so far, with a further target of employing 1 lakh more youth over the next six months. The government has also set a target of distributing tablets to 2 crore youth, of whom 60 lakh have already received them. Adityanath announced that 50,000 scooters would be distributed to meritorious female students next month, and noted that under the Chief Minister's Kanya Sumangala Yojana, eligible girls receive one-time financial assistance of ₹25,000.

UP Minister Asim Arun described the Chief Minister's approach as treating investment in youth as investment in the country's future. Adityanath himself stressed that students aged between 15 and 18 today would form a critical part of India's workforce by 2047, contributing to a developed India.

Uttar Pradesh's Broader Economic Claim

Adityanath asserted that Uttar Pradesh has shed its historical image as a 'sick state' and has transformed into a revenue-surplus state and a growth engine of the national economy. He said there was no shortage of funds for timely scholarship disbursement and urged students to use the money responsibly — particularly for purchasing quality books and building personal book banks. How these claims are independently verified remains a question the state government has not yet addressed formally.